The Shapoorji Pallonji Group has submitted a bid to build an LNG regasification terminal at the Mumbai Port Trust.

Shapoorji Pallonji Infrastructure Capital Company Ltd (SP Infra), a unit of the Mumbai-based conglomerate, is one of the two entities that have submitted bids to develop a floating storage and regasification unit (FSRU) that can load 3.5 million tonnes per annum (mtpa) of LNG at Mumbai port.

Unlike a conventional, high-cost LNG regasification terminal, a floating unit is a cost-effective and faster way to secure energy supplies. It allows loaded LNG carriers to dock alongside for a ship-to-ship transfer of LNG.

The Mumbai Port Trust LNG FSRU, estimated to cost over Rs. 2,690 crore, including Rs. 1,500 crore for an FSRU vessel, has received environment and coastal regulation zone (CRZ) clearances from the Ministry of Environment, Forest and Climate Change. A Mumbai Port Trust spokesman said Cabinet approval for the project is awaited ahead of finalising the tender, and confirmed that Shapoorji Pallonji has placed a bid for the same.

SP Infra has also acquired a 60 per cent stake in Gopalpur Ports Ltd, the entity that runs a port at Gopalpur in Odisha’s Ganjam district. The acquisition value has not been made public yet. The port’s master plan is designed to handle 40 mt of cargo in three phases.

The Gopalpur port was originally awarded by the Odisha government in 2006 to an equal joint venture between Sara International Ltd and Orissa Stevedores Ltd for development and operations for an initial period of 30 years, extendable by 20 years.

SP Infra is also developing a greenfield port at Chhara in Gujarat’s Gir Somnath district under a concession pact with the Gujarat Maritime Board.